Buying investment property - Getting the Right Lender

Buying investment property - Getting the Right Lender

Are you planning to buy your investment property with financing?

Finding the right lender is very important. Welcome to Wealthy Wednesday. Not all lenders are good with investment financing. So you need to get a lender who is great with investment financing and team up with them because that is very important. You don't want to get a property and then look for a lender and you may lose out at the end because it's very important whether you are buying a fix and flip or you are buying a buy and hold rental property. 

Every loan is different depending on what kind of investment you are doing. For example, if you are buying a property with a buy and hold, you will look for a lender who is going to give a good interest rate and who is going to get you a loan with a lower down payment, whatever you can get, even if they ask for some documentation, bank statements, credit report. It is okay because you're buying something that you're going to hold for a long term. So your goal is to get low interest rate and you want to maximize the money you have available. So you want to put as low a down payment as you can.

Now, on the other side, if you're buying a fix and flip, you really don't care about what's the interest rate because you are only holding the property, maybe for six months. So in that case, you want to get a lender who does not need any documents.

They are giving you a commercial loan because they're buying the property with a company name and reasonable down payment.

So that's the way you can have more money for the repair and so. But definitely you do not care about how high the interest rate because you're just holding for a little bit of time. And definitely you don't want to go with so much documentation, the whole nine yards. You don't want to go with that.

So there are a lot of other criterias. The bottom line is before even you start finding your investment property, get a lender on board the right lender because again, the investment is the number game, the number has to be right.

Hopefully this information will help you find the right lender for your next investment. Give me a call if you have any questions.

My name is Shawn Bhakta from RE/MAX Presidential.

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